Newsflash Signup

Buy now at Zavvi.com
Develop Pub Quiz

eBay suffers steep Q4 income drop

Bookmark with Social network
eBay suffers steep Q4 income drop

31 per cent deterioration in what’s been called an “extremely difficult holiday season”

Internet auction giant eBay has revealed that revenues for Q4 2008 were down seven per cent on the same period in 2007, reaching $2.04bn – far lower than analysts had predicted.

Worse still, revenue for Q4 was down a hefty 31 per cent on the quarter before.

“We've been operating in an almost unprecedented external environment,” chief executive John Donahoe stated. “This was an extremely difficult holiday season. Even e-commerce saw negative growth for the first time.”

eBay is said to be losing an increasing amount of its business to rivals such as Craigslist and Amazon. The likes of Play.com are also powering on with their pre-owned sales efforts.

The site has come under harsh criticism this year for revisions introduced to its selling process, which included denying sellers the right to leave feedback on customers. PayPal has also come in for some stick following a perceived unwillingness to act against dodgy sellers.

Advertisement

Ebay’s shares have dropped nearly six per cent since the results were announced.

Good!

posted by Baz Jan 22, 2009 at 5:04 pm
1
Baz

I'm not surprised by this int he slightest. Anyone who has tried using eBay recently has probably had shock or two. Very heavy handed methods to change to the way sellers are treated and items removed (without any course for appeal) results in without warning account suspensions, threatening emails etc. They're shooting themselves in the foot at every turn and I don't believe it's down to the credit crunch and buyers not buying more like sellers are leaving or being forced to leave in their droves. It seems almost impossible to stay within eBays rulebook without receiveing a warning every 2 to 3 weeks for one policy or another they deem you have broken. I'm shut down most of my eBay operation and started preparing my own site. Something I should have done years ago. Oh and don't even get me started on Vero - someone sees something they don't like - they report it to eBay, ebay remove it - warning if you do it again instant ban. No chance of appeal.
eBay deserve everything they get.

  • + 0 
  • - 0 
  • 0

Re: Good!

posted by Jon Jan 22, 2009 at 6:36 pm
2
Jon

eBay have, over the last year, systematically weighed the virtual scales against private sellers - the very people who made eBay what it is, and who offer the unique and rare items that brings in the buyers after items they cannot get in regular stores and sites. Look how many Buy It Now items are on compared to last year - a good 200% more, because that is what eBay have decided they want. eBay just forgot that their customers don't, for the most part, want that. They want unique, they already know where to buy CD's and games, etc
As the previous poster states, eBay has also really cracked down on what a seller can state and has done this largely by use of banned keywords, or flagging keywords. Want to sell something with the word Warcraft in? Better be prepared to battle their system to find a category you can use the word in without it saying you are listing a virtual item (even when you are not!).

  • + 0 
  • - 0 
  • 0

Re: Good!

posted by Trent Steel Jan 23, 2009 at 7:35 am
3
Trent Steel

This is no surprise - people have now started to realize that Ebay is nothing more than a glorified car boot sale!

Many of the goods available can be bought brand new & cheaper on other retailers websites!

As far as selling goods are concerned - once you have paid the fee's (insertions, selling fee's & paypal) and gone to the post office it's not worth all that hassle!

  • + 0 
  • - 0 
  • 0

Re: Re: Good!

posted by Paul Jan 23, 2009 at 12:41 pm
4
Paul

I agree: good.

However good eBay is as a piece of software/service/market, you can't escape the fact that it is swamped with illegal goods and evil bastard traders. And also run by greedy people who want to aggressively monopolize online auctioneering.

I lost faith in eBay years ago. For numerous reasons. 1. I'd been ripped off too many times, with either nothing showing up, and excuses, or counterfeit goods advertised as genuine. 2. My eBay (and real life) reputation was destroyed by dodgy traders giving unfair reciprocal feedback on genuine complaints. and 3. I felt there was a serious lack of care/help from eBay and PayPal support in dealing with the rogue traders.

Jon says above that imposing restrictions on sellers leaving feedback on customers is wrong - I disagree; it stops the criminals selling counterfeit goods attacking innocent customers who complain.

  • + 0 
  • - 0 
  • 0

Leave a Comment

Develop Pub Quiz
MCV

ABOUT US

MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by Intent Media, which specialises in entertainment, leisure and technology markets

Intent media, Company number 03641099